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Brian wants to buy a motorcycle and is planning to get motorcycle insurance. Suppose the average accident rate is 0.1 and the average expenses incurred for accidents is $38,000. If an insurance plan has a yearly premium of $1,000 and a deductible of $4,000, the expected value per accident to each insured motorist is -$ and the expected value per accident-related claim to the insurance company for every customer is -$

User KungWaz
by
6.6k points

1 Answer

4 votes

Answer:

$1,200 and $409

Explanation:

User Jimbo Jones
by
6.7k points
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